Fed Interest Rate Cuts 2024 Timeline. The federal funds rate is the interest rate at which depository institutions trade federal funds (balances held at federal reserve banks) with each other overnight. The federal reserve is still eyeing three interest rate cuts this year, as officials wait for a bit more confidence that inflation is reliably falling to more normal levels.
The federal open market committee chose to lower its key overnight. Rate cuts typically follow a recession or significant decline in economic activity.